What is the difference between OAS and GIS?

OAS (Old Age Security) is a pension paid to most Canadians age 65+ regardless of work history. GIS (Guaranteed Income Supplement) is an additional benefit for low-income seniors receiving OAS. OAS is universal; GIS is income-tested.

How much are OAS and GIS in 2026?

Maximum OAS is approximately $730/month (age 65-74) and $800/month (age 75+). Maximum GIS for a single person is approximately $1,000/month. Both are adjusted quarterly for inflation.

Do I have to apply for OAS and GIS?

OAS is usually automatic (Service Canada sends a letter). However, you should confirm and apply if you do not receive a letter 6 months before turning 65. GIS requires a separate application or automatic renewal based on tax filing.

OAS vs GIS Explained | Canada 2026

OAS and GIS Overview

Feature	OAS	GIS
Full name	Old Age Security	Guaranteed Income Supplement
Type	Universal pension	Income-tested supplement
Eligibility	65+, lived in Canada 10+ years (after 18)	OAS recipient with low income
Maximum (single)	~$730/month (65-74)	~$1,000/month
Maximum (75+)	~$800/month	~$1,000/month
Taxable	✅ Yes	Counted as income but offset by deduction
Income test	Clawback above $90,997	Reduced based on income
Residency requirement	10 years (partial), 40 years (full)	Same as OAS

OAS (Old Age Security)

OAS Amounts (Approximate 2026)

Age	Maximum Monthly	Maximum Annual
65-74	~$730	~$8,760
75+	~$800 (10% increase)	~$9,600

OAS Eligibility

Situation	Eligible?	Amount
Lived in Canada 40+ years (after 18)	✅ Full OAS	100%
Lived in Canada 10-39 years	✅ Partial OAS	(Years ÷ 40) × full amount
Lived in Canada under 10 years	❌ Not eligible	$0
Currently living outside Canada	Depends	Need 20+ years for portable OAS

OAS Clawback (Recovery Tax)

Net Income	OAS Impact
Under $90,997	Full OAS
$90,997-$148,000	Partial (lose 15¢ per $1 over threshold)
Above ~$148,000	No OAS (fully clawed back)

Example: Income of $100,000 = $9,003 over threshold × 15% = $1,350 OAS repaid.

Deferring OAS

Start Age	Increase	Monthly Amount
65	0%	~$730
66	+7.2%	~$783
67	+14.4%	~$835
68	+21.6%	~$888
69	+28.8%	~$941
70	+36%	~$993

Break-even age: ~82-83. If you expect to live beyond 83, deferring to 70 pays more total.

GIS (Guaranteed Income Supplement)

GIS Amounts (Approximate 2026)

Situation	Maximum GIS/Month
Single	~$1,000
Couple (both on OAS)	~$605 each
Couple (one on OAS)	~$1,000 for OAS recipient

GIS Income Thresholds

Situation	Income Cutoff (Approx)
Single	~$21,600 annual income (excluding OAS)
Couple (both OAS)	~$28,500 combined (excluding OAS)

GIS reduces by 50¢ for every $1 of income above exemptions.

What Counts as Income for GIS

Income Source	Counts?
CPP	✅ Yes
RRIF/RRSP withdrawals	✅ Yes
Employment income	✅ (first $5,000 exempt, next $10,000 at 50%)
Pension income	✅ Yes
Investment income	✅ Yes
TFSA withdrawals	❌ No
OAS itself	❌ No
GIS itself	❌ No

Key insight: TFSA withdrawals do NOT reduce GIS. This makes TFSA the best account for low-income retirees.

Combined OAS + GIS Income

Single Senior (Low Income)

Source	Monthly	Annual
OAS	$730	$8,760
GIS (max)	$1,000	$12,000
CPP (average)	$800	$9,600
Total	$2,530	$30,360

Couple (Both 65+, Low Income)

Source	Monthly (Combined)	Annual
OAS × 2	$1,460	$17,520
GIS × 2	$1,210	$14,520
CPP × 2 (average)	$1,400	$16,800
Total	$4,070	$48,840

Strategies for Maximizing GIS

Strategy	How It Helps
Maximize TFSA savings before retirement	Withdrawals don’t reduce GIS
Minimize RRSP if income will be low	RRIF withdrawals reduce GIS
Draw down RRSP before 65	Reduce RRIF obligations
Avoid non-reg investment income	Interest/dividends reduce GIS
File taxes every year	GIS renewal requires tax filing

How to Apply

Benefit	Application
OAS	Usually automatic at 65 (confirm with Service Canada)
GIS	Apply with ISP-3025 form or My Service Canada Account
Renewal	Automatic if you file taxes annually
Retroactive	Can get up to 11 months retroactive payments

GIS and RRSP/RRIF withdrawals in retirement

One of the most important tax planning considerations for low-income seniors is that RRIF minimum withdrawals count as income for GIS purposes. This can significantly reduce GIS:

RRIF withdrawal	GIS reduction (approx.)
$5,000/year from RRIF	~$2,500 reduction in annual GIS
$10,000/year from RRIF	~$5,000 reduction in annual GIS
$20,000/year from RRIF	~$10,000 reduction in annual GIS (may eliminate GIS entirely)

GIS reduces by $1 for every $2 of income, which creates a 50% effective marginal rate on income for GIS recipients. This is a powerful argument for:

Holding savings in a TFSA rather than RRSP for those who expect to receive GIS
Converting RRSP to RRIF only as required (mandatory conversion at age 71)
Planning RRIF withdrawals to stay below the GIS income threshold

Best strategy for lower-income retirees: maximize TFSA contributions during working years — TFSA withdrawals do not count as income for GIS or OAS clawback purposes, making them the most efficient income source in retirement for low-income seniors.

OAS automatic enrollment

Since 2013, most Canadians are enrolled for OAS automatically at age 65 and receive a letter from Service Canada about 6 months before their 65th birthday. You do not need to apply if:

You have filed taxes in Canada for several years, and
You have been a Canadian resident long enough to qualify

If you have not received an automatic enrollment letter by age 64, contact Service Canada to confirm your status or apply manually using Form ISP-3000.